Text: H.R.5991 — 111th Congress (2009-2010)All Bill Information (Except Text)

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Introduced in House (07/30/2010)


111th CONGRESS
2d Session
H. R. 5991

To establish small metalworking business financial assistance programs, and for other purposes.


IN THE HOUSE OF REPRESENTATIVES
July 30, 2010

Mr. Murphy of Connecticut (for himself and Mr. Ryan of Ohio) introduced the following bill; which was referred to the Committee on Small Business, and in addition to the Committee on Ways and Means, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned


A BILL

To establish small metalworking business financial assistance programs, and for other purposes.

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,

SECTION 1. Short title; Findings.

(a) Short title.—This Act may be cited as the “American Metalworking Manufacturers Support Act”.

(b) Findings.—Congress finds the following:

(1) There are roughly 35,000 metalworking companies with approximately 2 million employees throughout the country who manufacture critical products for the defense, aerospace, medical, automotive, agriculture, and construction industries, among many others.

(2) Uncertainty surrounding the timeliness of paid receivables, and a need for steady cash flow for day-to-day operations and investments creates challenges for small middle market manufactures who are a critical part of the industrial supply chain.

(3) In the current financial environment, most lending institutions will not provide loans to metalworking companies.

(4) The U.S. Government should help foster an environment that encourages metalworking in America by supporting small middle market manufacturers.

(5) The Federal Government currently incentivizes larger businesses and private contractors to use small businesses and tax credits are important criteria to foster growth among small middle market manufacturers.

TITLE ISMALL METALWORKING BUSINESS ASSISTANCE PROGRAMS

SEC. 101. Definitions.

For purposes of this subtitle:

(1) COST.—The term “cost” has the same meaning as is given the term “cost” in section 502(5) of the Federal Credit Reform Act of 1990 (2 U.S.C. 661a(5)).

(2) SMALL METALWORKING BUSINESS.—The term “small metalworking business” means a small business concern, as defined under section 3(a) of the Small Business Act (15 U.S.C. 632(a)), whose primary purpose is the domestic manufacturing and production of parts, components, or assemblies by using metalworking and forming technologies, including metal stamping, fabricating, slide forming, fine blanking, laser cutting, punching, deep drawing, swaging, roll forming, spinning, machining, grinding, rotary machining, cold heading, forging, casting, wire electrical discharge machining, conventional electrical discharge machining, and computer numerical control machining.

(3) GUARANTEE.—The term “guarantee” has the same meaning as is given the term “loan guarantee” in section 502(3) of the Federal Credit Reform Act of 1990 (2 U.S.C. 661a(3)).

(4) SECRETARY.—The term “Secretary” means the Secretary of the Treasury.

SEC. 102. Loans authorization.

(a) Loans authorized.—Funding as may be necessary, not to exceed $10,000,000,000 for costs under this section shall be available to the Secretary, without further appropriation or fiscal year limitation, for the costs of such program. All funds received by the Secretary in connection with loans made pursuant to paragraph (b) shall be paid into the general fund of the Treasury for reduction of the public debt.

(b) Terms and conditions of loans.—

(1) IN GENERAL.—A loan made pursuant to this section—

(A) shall be for a maximum amount of $3,000,000;

(B) shall be for a maximum period of 18 months, after which the Secretary shall require any small metalworking business receiving a loan to repay the loan in full; and

(C) shall not obligate the recipient of such loan to pay any interest.

(2) ADDITIONAL TERMS AND CONDITIONS.—The Secretary may establish additional terms and conditions with respect to loans made under this section.

(c) Application.—An eligible small metalworking business that seeks a loan under this section shall submit an application to the Secretary at such time, in such manner, and containing such information as the Secretary may require.

SEC. 103. Small metalworking business stabilization program.

(a) Definitions.—In this section—

(1) the term “Administrator” means the Administrator of the Small Business Administration;

(2) the term “qualifying small business loan” means a loan made under section 7(a) of the Small Business Act (15 U.S.C. 636(a)) to a small metalworking business before the date of enactment of this Act;

(3) the term “small metalworking business” means a small business concern, as defined under section 3(a) of the Small Business Act (15 U.S.C. 632(a)), whose primary purpose is the domestic manufacturing and production of parts, components, or assemblies by using metalworking and forming technologies, including metal stamping, fabricating, slide forming, fine blanking, laser cutting, punching, deep drawing, swaging, roll forming, spinning, machining, grinding, rotary machining, cold heading, forging, casting, wire electrical discharge machining, conventional electrical discharge machining, and computer numerical control machining; and

(4) the term “stabilization loan” means a loan under the program established under subsection (b) made by the Administrator either in cooperation with a bank or other financial institution through an agreement to participate on a deferred (or guaranteed) basis or directly.

(b) Establishment of a loan program.—Subject to the availability of appropriations, the Administrator shall carry out a program to provide stabilization loans to viable (as such term is defined pursuant to regulations prescribed by the Administrator) small metalworking businesses that have a qualifying small business loan and are experiencing immediate financial hardship.

(c) Technical assistance.—The Administrator shall establish a technical assistance program to assist a bank or other financial institution that has an agreement with the Administrator to provide stabilization loans.

(d) Application.—To be eligible for a stabilization loan, a small metalworking business shall submit to the Administrator an application at such time, in such manner, and containing such information as the Administrator may require.

(e) Use of funds.—A stabilization loan shall be used to make periodic payments of principal and interest, either in full or in part, on a qualifying small business loan for—

(1) amounts payable during a period of time not to exceed 6 months; or

(2) a period of time during which the total amount of such periodic payments does not exceed $50,000,

whichever is less.

(f) Loan Terms.—A stabilization loan shall—

(1) carry a 100 percent guaranty; and

(2) have interest fully subsidized for the period of repayment.

(g) Repayment.—Repayment of a stabilization loan shall—

(1) be amortized over a period of time not to exceed 5 years; and

(2) begin not later than 12 months after the end of the month or other period for which the last periodic payment (as referred to in subsection (d)) is made.

(h) Collateral.—The Administrator may accept any available collateral, including subordinated liens, to secure a stabilization loan.

(i) Fees.—The Administrator may not charge any processing fees, origination fees, application fees, points, brokerage fees, bonus points, prepayment penalties, or other fees for a stabilization loan.

(j) Sunset.—An application submitted under subsection (c) for a stabilization loan may not be accepted after December 31, 2010.

TITLE IIREVENUE PROVISION

SEC. 201. Small business metalworking credit.

(a) In general.—Subpart D of part IV of subchapter A of chapter 1 of the Internal Revenue Code of 1986 is amended by adding at the end the following new section:

“SEC. 45R. Small metalworking business credit.

“(a) In general.—For purposes of section 38, the small metalworking business credit for any taxable year is an amount equal to 30 percent of the amounts paid or incurred for metal parts, components, or assemblies produced for the taxpayer under a contract between the taxpayer and an eligible small metalworking business.

“(b) Eligible small metalworking business.—For purposes of this section, the term ‘eligible small metalworking business’ means any person—

“(1) who is unrelated to the taxpayer,

“(2) who is engaged in the trade or business of metalworking in the United States, and

“(3) who is a small business as defined under section 3(a) of the Small Business Act (15 U.S.C. 632(a)).

“(c) Definition and special rule.—For purposes of this section—

“(1) METALWORKING.—For purposes of this section, the term ‘metalworking’ means the production of parts, components, or assemblies by using metalworking and forming technologies, including metal stamping, fabricating, slide forming, fine blanking, laser cutting, punching, deep drawing, swaging, roll forming, spinning, machining, grinding, rotary machining, cold heading, forging, casting, wire electrical discharge machining, conventional electrical discharge machining, and computer numerical control machining.

“(2) RELATED PERSON.—A person shall be treated as related to another person if they bear a relationship to such other person described in section 267(b) or 707(b).

“(3) ELECTION NOT TO TAKE CREDIT.—No credit shall be determined under subsection (a) for any amount if the taxpayer elects not to have this section apply to such amount.”.

(b) Conforming amendments.—

(1) Section 38(b) of such Code is amended by striking “plus” at the end of paragraph (34), by striking the period at the end of paragraph (35) and inserting “, plus”, and by adding at the end the following new paragraph:

“(36) the small metalworking business credit determined under section 45R(a).”.

(2) The table of sections for subpart D of part IV of subchapter A of chapter 1 of such Code is amended by adding at the end the following new item:


“Sec. 45R. Small metalworking business credit.”.


(c) Effective date.—The amendments made by this section shall apply to taxable years beginning after the date of the enactment of this Act.